Shinhan Card makes strategic investment in car sales platform

South Korea’s Shinhan Financial Group is intensifying its online car sales business through partnerships with online platforms. The group’s two affiliates Shinhan Card Co. and Shinhan Capital Co. on April 12 signed a strategic investment agreement to build an online car dealership in cooperation with Getcha Co., a Korean online car sales service provider.  

Shinhan Card, the group's credit card unit, said it will invest 3.5 billion won ($2.9 million) in Getcha via a strategic investment fund managed by Shinhan Capital. Last August, Shinhan Card executed its first investment via the fund -- it injected 10 billion won in Auto Hands Co., a Korean platform for buying and renting used cars.

Shinhan Card is planning to expand its car broker business and related financial services by combining the sales expertise of Shinhan My Car, the group’s car financing service provider, and Getcha. Launched in September 2020, Shinhan My Car's accumulated transactions have surpassed 1 trillion won with more than 1 million monthly visitors. Founded in 2015, Getcha has secured around 1,600 dealers selling new cars and plans to enter the used car market.

Shinhan Card will suggest the best cars and dealers for clients based on a recommendation system that Shinhan My Car and Getcha are jointly developing. The card company will also offer payment, leasing and rental services.  

The strategic investment aims to build an ecosystem that provides all the resources necessary for buying and selling cars, a Shinhan Card official said.

Shinhan Financial Group is also expanding investments in the global car sales platform. Shinhan Global Investment Banking, the group's IB unit, invested $10 million in the Series C1 round of Carro last November. Carro is the top marketplace for used cars in Singapore, which received a $360 million investment from SoftBank Vision Fund II in June 2021.

Write to Nan-Sae Bin at binthere@hankyung.com
Jihyun Kim edited this article.